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Home Buyers: 5 Things to Know As You Wait for Closing Day By Joe Szabo, Scottsdale Real Estate Team

January 2, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team For some home buyers, the closing day for a real estate purchase is as formal and complicated as the transaction itself. For others, it’s just a blip on the radar. Either way, there are some important things to keep in mind as you make your way to homeownership.

Your mortgage rate could expire

Mortgage interest rates can fluctuate daily, and the rate your bank quoted isn’t good forever. Instead, a bank will “lock-in” your interest rate for 45, 60 or any number of days. Once that lock expires, you may have to pay a higher rate. Any number of issues can come up: open permits, illegal renovations, or other types of roadblocks might require the loan process to stop until resolution. For example, a buyer in upstate New York learned at the last minute that a previous owner built an addition to the home in the 1970s but never documented it properly. It turns out it was so bad that it wouldn’t pass today’s requirements. The buyer had to hire an architect, re-draw plans, and document the issue before the bank approved the loan. And, consequently, he lost the rate he’d been quoted. Don’t wait until it’s too late, and don’t assume it’s a smooth journey to the closing table. Rate-lock expiration can throw an expensive wrench into the closing process.

The mortgage process isn’t over yet

Some buyers think once they’ve completed the application and submitted paperwork, their loan is approved and ready to go. Not so fast. Today, some lenders will verify income, assets or credit all the way up until the very last minute. Don’t make any major changes to your finances until the closing. That means don’t apply for a new credit card, finance a new car, or take a new job without running it by your mortgage professional. The smallest (even seemingly insignificant) change to your finances can affect your ability to be approved for a loan.

And the house isn’t yours yet

In some locations, the walk-through is a formal event, and in others, it’s a checked box. Most real estate contracts provide for a walk-through up to 24 hours before the closing. Be sure to take advantage of it. Why? You don’t want to close on the home if systems aren’t working, the seller hasn’t made the necessary repairs, or the seller hasn’t moved out. If things aren’t as they should be, you can postpone the closing until they are.

You may need to do some homework

Once the home closes, not only is it physically yours, but also it’s completely your responsibility. In most states, the law is on the side of the buyer, and requires the seller to disclose any issues and confirm they’ve been resolved. In others, it’s “caveat emptor,” or buyer beware. In this case, it’s up to the purchaser to double- and triple-check that the seller closes all outstanding building permits, releases all liens from the title report, and resolves any issues with the local building department, assessor or health department.

The actual closing could be very low-key

In most places, the end happens in parts, and the two parties don’t need to meet. Buyers sign their loan documents in the privacy of their home or office, and the seller shows up at the title company to sign off on the deed. It’s seamless and straightforward, and happens in the background. Buyers wire their down payment, and sellers receive their funds electronically. But sometimes, the buyers and sellers and lots of attorneys and title folks sit around the table for hours, passing paperwork and using calculators. The process is archaic and cumbersome. What’s worse: If the transaction wasn’t smooth, the atmosphere around the “closing table” could be pretty tense.

What can you do?

The easiest way to a smooth closing is to be on the lookout for red flags and do lots of research. Have a solid team on your side, starting with a good local agent. He or she can refer you to necessary mortgage pros, title insurances, escrow offices, attorneys or inspectors. Processes and customs vary by market, and customs that apply in one community won’t matter across the country, so getting as much information upfront as you can will help avoid unpleasant surprises. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

5 Actions To Take Now for a Better 2017 By Joe Szabo, Scottsdale Real Estate Team

December 26, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Getting started now on organizing for 2017 will help you to ease the holiday crunch and paint an attainable path into the new year. Here are five steps you can take to get started.

Donate now

The holidays are upon us, and the accumulation of new decorations and gifts are sure to put a squeeze on our living space. Now is the time to donate older items that you haven’t used in a while.

A tidy, streamlined home is a joy to live in. Courtesy of Krista Watterworth.

Give yourself some breathing room and make space for the influx of new presents coming in (which will need to be stored somewhere beginning in January). You will thank yourself when the holidays are over.

Get a holiday breakdown crew

Out of the garage, attic, and closets come the decorations! You will surely be spending hours giving your home (inside and out) that “just right” holiday feel. Unfortunately, it will take hours to pack it all away again, so take a few steps now toward making the putting away easier on yourself.

First, gather or hire a holiday crew to help you take down, pack, and store all your decorations.
Second, set a firm time and date for the event.
Third, tell your holiday helpers to plan on spending the day with you to organize that closet, shelf in the garage, or attic space designated for seasonal decorations.

Putting away items in the new year will no longer be an event you put off — and you won’t have to do it alone.

Set gift budgets for the new year

There is one area in your budget that you can begin to manage now to help ease your outgoing cash flow in 2017. We often overlook the money we spend on gifts throughout the year. Reviewing the past year and setting a maximum spending limit for gifts now allows you to put a budget in place for next year. So, take a good look at your calendar and estimate how much you have already spent on birthdays and other special occasion gifts, then set a gift-buying budget — and do your best to adhere to it.

Prepare to live healthier in 2017

Do you typically make a New Year’s resolution to lose weight or eat healthier? This is a common goal for many of us, especially after packing on a few extra holiday pounds. But you don’t have to wait for the New Year. You can do something about it now rather than having to face the shame and remorse of overdoing it with family dinners and holiday parties. Consider making one small decision now to set yourself up for a win in the new year. Try adding salads to your lunches and dinners. The salads don’t have to be boring, either. Mix it up by adding fruit, or try a mix of veggies to add to the lettuce or kale base of your choosing. Also, try adding more fermented foods to your diet, such as sauerkraut and kimchi. Fermented foods help to reduce the craving for sweets, both at the end of the meal and in general. Losing weight and eating healthier are worthy goals that will improve your quality of life. It’s just a matter of doing it. So, compromise now and add those salads into your diet for a kinder entry into the new year.

Set a vacation goal

Is there a special place you’ve been dreaming of visiting or returning to? Give yourself the gift of deciding on one “dream” vacation for next year.

I’m not suggesting you hop online and book a trip this instant — just write down the idea on a card, wrap it, and give the dream idea to yourself as a holiday gift this year. Giving yourself the gift of a vacation idea this year is a concrete step in making the dream become a reality for next year. Of course, if you really want the dream vacation, you will want to work it into your budget and start saving for it now. This may mean buying fewer “filler” gifts for others so you can fulfill a more meaningful gift for yourself and your family. That dream vacation only becomes a reality when you set an attainable goal and take the necessary steps to arrive at the destination. Don’t be afraid to start now. Managing the new tasks and challenges that will likely arise throughout the upcoming year will be simpler with these plans in place. What a way to welcome in the new year! Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

A Quick Guide to Holiday Houseplants By Joe Szabo, Scottsdale Real Estate Team

December 23, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Don’t let a silly houseplant add even more stress to your holiday routine. From now through January, poinsettia, amaryllis, and holiday cacti only ask for three things: the right drainage, sunlight, and moisture. After the holidays you can either throw them out with the tree and buy new plants next year, or you can follow these tips to get even bigger blooms next time around.

What holiday houseplants want — for the holidays

Drainage: First, take the containers out of their cellophane wrappers, which somehow manage to both trap water and leak, staining whatever sits beneath. To save your plant and your coffee table from excessive water, slip the plastic container or rootball into a real flowerpot with a drainage hole. Place a saucer beneath that to protect your furniture. Sunlight: Notice that I said ‘sunlight’ rather than ‘artificial light.’ Even bright fluorescent lights often aren’t enough, so place your plant in a room that gets bright indirect light from a nearby window. This means that it should be bright enough to read comfortably with the lights off, but not so bright that you have to squint when looking out the window. Oddly enough, your houseplant’s shadow offers another clue: The plant should have a blurry shadow. If there is no shadow, it needs more light. If the shadow is crisp, it’s too sunny. Water: Overwatering is the No.1 killer of houseplants, and they’re especially vulnerable during the colder months. Here’s how to water them without regrets. Keep the houseplant where you can easily monitor its moisture. Before you water, allow the top inch (or fingertip length) of the potting mix to dry out. Then water the potting mix (not the leaves) until it is moist throughout. That’s it!

How to get bigger blooms next year

Up for a minor challenge and a big reward? Keep your poinsettia, amaryllis, and holiday cactus thriving and get bigger blooms each year by following these instructions. Poinsettia: Poinsettia is probably the trickiest plant on this list to grow indoors year-round, but the payoff is big. After the holidays, prune the stems back hard to about 3 to 4 inches tall. Add slow-release fertilizer according to label instructions and continue watering whenever the top inch of the potting mix dries out. Provide extra humidity during winter by placing it in a brightly lit bathroom or occasionally misting with water. Your poinsettia might look ragged by spring, but will quickly perk up if placed outdoors in a shady spot after the last frost. Prune again in summer for a bushier plant. To get a colorful display of leaf bracts, provide 14 hours of darkness every day from September through December. You might feel silly, but will be rewarded with a plant that grows bigger and bushier each year. Holiday cactus: Since holiday cacti are naturally found growing along with orchids in the branches of South America’s rainforests, repot the plants in a 50 percent mixture of orchid mix and potting mix. After the blooms have faded, prune the outermost pads to stimulate growth and bushiness. Give your holiday cactus a rest period during winter by watering only when the potting mix has dried out completely. Resume regular watering in April, and feed with an orchid fertilizer according to label directions. In September, place the plant in a cool place (between 50 and 70 degrees Fahrenheit) and reduce watering until flower buds form. Then resume normal watering, and fertilize for a flush of flowers that gets bigger each year. Amaryllis: Amaryllis (Hippeastrum) is very easy to grow and will readily bloom again next December with just a little bit of care. After blooming, cut off the flower stem and continue letting the top inch of potting mix dry out between waterings.

In spring (after the last frost) move it outdoors to a sunny spot, provide fertilizer, closely monitor for slugs, and water regularly. Starting in mid-August, allow the potting mix to dry out completely between waterings. When you see a flower bud about eight weeks later, move the plant to a sunny spot (direct sun is fine) to get a strong and sturdy stem, and resume regular watering. Once the flowers have opened, display your amaryllis with pride. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

5 Trends in New Home Construction By Joe Szabo, Scottsdale Real Estate Team

December 16, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In the world of apparel fashion, trends go in and out in a matter of months. For interior design, trends may change year to year. But home construction changes much more slowly — on the scale of decades. Home fashions take a while to build momentum, but they are happening. Here’s a look at five trends in the world of home construction and beyond.

Solar roofing

If you haven’t been paying attention, it might feel as if the current solar renaissance came out of nowhere. Recent improvements in solar tech have moved solar panelsfrom an expensive niche technology to a reality for many homeowners. “What’s really made solar accessible — beyond improved efficiency — is the support it’s received from power companies, state and local governments, and eco-conscious investors,” says Brooke Nally, content strategist with Solar Power Authority. This support translates into leasing options, subsidies, and tax breaks for solar customers. As a major home renovation, solar panels are already making waves in the home roofing space. “We see a lot of interest in solar from people who are redoing their roofs — it’s the perfect time to consider adding panels,” Nally explains. From traditional panels to Tesla’s solar shingles, roof design is already seeing major shifts to accommodate solar.

Smart homes

It’s no secret that home automation has become a growing trend in the home building arena. Every year, new companies roll out novel technologies to help people better manage and control their homes. Even search engine giant Google got in on the smart home game, acquiring smart thermostat company Nest for $3.2 billion. “What we’re seeing more and more is companies trying to address needs that people never thought they had,” says David DeMille, online manager for ASecureLife.com. “New devices enter the marketplace all the time, extending past basic sensors to include Wi-Fi enabled doorbells, portable cameras, and two-way speakers.” DeMille is already seeing homes being retrofitted with these devices, and expects they will become standard in new home construction moving forward. But this trend may take some more baking before it’s ready to really rise. Home automation can lower power bills and make your home safer, but with constantly updating technologies, they haven’t historically offered a solid return on investment.

Energy-efficient windows

Not even windows are immune to the growing popularity of home automation. For example, data shows that windows are about 25 percent more energy efficient when locked, according to Sal Abbate, senior vice president at Andersen Windows. Imagine getting a reminder to close or lock your windows to save on your energy bills. “That kind of information sent back to a homeowner – we think could be a really interesting trend,” he explains. Energy efficiency will continue to be a driving trend in windows moving forward, as glass films and coatings make windows better at insulating from heat and cold. Glazing (coating windows so they can become frosty or opaque at the flick of a switch) may be the next science fiction-cum-reality development in windows, as more manufacturers experiment with how to bring the technology out of the luxury market and into everyday homes.

Barn doors

Though this one is partly an interior design trend, installing barn doors requires enough construction to qualify as a building trend. Most interior barn doors slide on a bar mounted above the frame, which presents a smaller profile for interior thresholds.

Electric car charging stations

The continued growth of the electric car industry is having a lasting impact on at least one aspect of home building: the garage. As more homeowners make the switch to fully electric cars, charging stations are becoming a more common fixture in garages. “Demand has grown a lot recently,” real estate agent Anna Sherrill reports. Sherrill handles sales for a boutique Miami property, Louver House, which recently installed four charging stations in its 24-car parking garage. The most expensive stations are still around $3,000, while self-installed units can be as cheap as $300. Expect to see more electric car charging stations in the garages of tomorrow. Home construction has changed drastically in the past decade with the emergence of home automation and a stronger focus on green homes. However, changes in technology and lifestyles will continue to drive home construction changes with a renewed focus on flexibility, automation, and energy efficiency. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

9 Winter Wonderland Homes to Get You in the Holiday Spirit By Joe Szabo, Scottsdale Real Estate Team

December 14, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team There are those who flee to warmer weather in the winter months, and then there are those who bundle up and head right to the slopes. If you fall into the latter category and a dream home is on your wish list, these 10 postcard-perfect winter wonderlands will be just the thing to get you in the holiday spirit. With gorgeous snowy views and easy access to skiing, snowshoeing, and sledding, these homes offer the ultimate apres ski retreats, with cozy features like fireplaces, outdoor hot tubs, and even a hot chocolate bar. Breckenridge, CO For sale: $10.475 million

Dreaming of your own private ski lodge? Look no further than this Breckenridge, CO luxury property. The 7-bedroom, 8-bathroom, European-style ski-in/ski-out lodge is conveniently located right near the Snowflake lift.

Olympic Valley, CA

For sale: $2.45 million

Home to the 1960 winter games, the aptly named Olympic Valley near Lake Tahoe is a ski-lover’s dream. Nestled in the mountains, you can soak in the outdoor hot tub of this 4,100-square-foot home before drying off by the cozy fireplace.

Vail, CO

For sale: $16.5 million

For a luxury winter retreat with a rustic vibe, check out this 5-bedroom, 5-bathroom home in the popular winter resort town of Vail. Walk to Gondola One and the shops and restaurants of Vail Village, then retreat back to your own private lodge.

Tamarack, ID

For sale: $349,900

If you’re looking for a move-in ready winter home with no hassle, this 2-bedroom, 2.5-bathroom cottage in the heart of Tamarack Resort is about as hassle-free as it gets. Offered fully furnished — including hot tub — the home is perfectly situated for easy access to ski lifts, cross-country skiing, snowshoeing, mountain biking, and hiking.

Park City, UT

For sale: $8.9 million

Why get a room in a ski resort when you can buy your own? This 6-bedroom, 8-bathroom, 9,918-square foot Park City home has all the high-end amenities one could ever want after a day on the slopes: quartz fireplace, Wi-Fi controlled hot tub, outdoor fire pit, temperature-controlled wine cellar, and an oversized ski room with boot glove warmers and a coffee/hot chocolate bar.

Steamboat Springs, CO

For sale: $4.9 million

This 8,690-square-foot furnished home is kind of like a log cabin on steroids. Rustic wood and stone aesthetics meet modern amenities like a chef’s kitchen, and fireplace and jetted tub in the master suite. Downstairs find a Western-style “saloon” that was made for entertaining.

Truckee, CA

For sale: $2.495 million

Imagine a charming two-story brick, stone, and wood cabin located right on the Northstar ski slope. This Truckee, CA ski-in/ski-out home is like your personal winter wonderland, with dual outdoor living areas and hot tub. Should you choose to leave, all the activities, restaurants, and shopping of Northstar are a stone’s throw away.

Mountain Village, CO

For sale: $7 million

The words “luxury” and “log cabin” don’t seem like they would go together, but this 5-bedroom, 7,516-square-foot home proves that the two don’t have to be mutually exclusive. Located on the slopes of Mountain Village, CO, it’s perfectly situated to enjoy beautiful views while warming up by the wood-burning fireplace.

The North Pole

Santa’s House The North Pole

Nowhere says winter wonderland like the North Pole. For the ultimate holiday daydream, imagine decking the halls at Santa’s house. The toy-lover’s paradise is nestled on 25 idyllic acres. Chock full of holiday magic, the home features a floor-to-ceiling river rock fireplace and a baker’s oven with 12 cookie settings. The property also boasts a state-of-the-art toy making facility, sleigh-ready garage, and reindeer stalls. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

How to Decorate Simply for the Holidays By Joe Szabo, Scottsdale Real Estate Team

December 10, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team You may have dreams of decorating your home like it’s a display window at a fancy department store, but then reality strikes: You’ve still got gift shopping and wrapping to do, holiday parties to attend and host … not to mention your everyday life to live. Don’t get overwhelmed. Go for intentional minimalism. Some years, less is more. Simple decor can still have a big impact — not the least of which is relieving you of some holiday hustle and bustle. All you need to do is hone in on sprucing up three key areas in your home.

Target your tree

The most obvious place to start is your Christmas tree. For an easy, fuss-free tree, go with a monochromatic color scheme. Another option is to use all neutral colors so you don’t have to worry about balancing a color palette or tree placement — it will coordinate with any room’s normal decor.

Make your mantel magical

If you have a fireplace in your home, the mantel is an ideal spot to bring a little holiday cheer, but don’t make it too complicated. Choose a statement-making garland to hang or drape across the top. Place some candles on the mantel to light at night, and you’re good to go.

Top off your table

The holidays are a prime time for entertaining, hosting, and gathering around the table. So bring seasonal flair to your table with a beautiful garland, which can go a long way as a table runner. Make the decor as simple as placing a lush garland in the center of your table and mixing in candles for added ambiance. Decorating for the holidays has never been so easy. Focus on these three spots, and your home will feel magical and holiday-ready in no time. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

3 Common Mistakes First-Time Home Buyers Make By Joe Szabo, Scottsdale Real Estate Team

December 7, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Everton Allen, now 28, graduated from college and was living with his parents while working as a graphic designer for the Miami Dolphins when he decided he wanted to start his own company and buy his own home. “I’d saved for a down payment over several years,” he says. “But I was worried it wouldn’t be enough, and that not having a traditional salary would affect my ability to qualify.” Such misgivings are common — prevalent, even. Fannie Mae’s Economic and Strategic Research Group conducted a survey to gauge consumers’ understanding of mortgage qualification criteria. About 40 percent of consumers responded “don’t know” when asked about requirements for minimum down payments, and 54 percent and 59 percent, respectively, said they didn’t know required minimum credit scores and maximum back-end debt-to-income (DTI) ratios.

Get professional advice

Allen sought help from a housing counselor at NID-HCA, a HUD-approved counseling agency in Miami Gardens. The counselor reviewed his credit, helped him make some adjustments, and assured him he could qualify for Fannie Mae’s HomeReady mortgage. HomeReady lets borrowers put as little as 3 percent down. It also requires completion of a $75 online pre-purchase education course by Framework Homeownership. “The course was a great tool that helped me to reach my goal and feel really prepared,” says Allen. Allen worked with a local real estate agent to purchase a 2-bedroom, 2-bath single-family home. He’s been a homeowner for about six months, and has transitioned to self-employment, retaining the Miami Dolphins as a client and adding the Miami Marlins. “I’m handling the mortgage payments just fine,” he reports. “It’s great to own a home and be self-employed.”

Learn the process

By seeking help, Allen avoided the pitfalls that trap some would-be buyers. “First-time buyers don’t know what they don’t know,” says Dawn Lane, broker/owner of Professional Realty Group in Las Vegas, NV. Lane says she’s seen it all — from tears to screams — when buyers can’t get a home they’ve fallen in love with. “There’s a difference in how first-time buyers versus veteran home buyers view the purchase journey,” notes Steve Deggendorf, a director of market insights research in Fannie Mae’s Economic and Strategic Research Group. “If consumers learn more about shopping for both their new home and their new mortgage, they will be more prepared to embark on the largest purchase most will make in their lifetime,” he states. A lack of home-buying knowledge can not only slow a deal, it can kill it, Lane points out.

Common pitfalls

Here are three predicaments first-time buyers may encounter along the purchase journey: Going it alone. It’s great to do some online home shopping — and you might see homes in neighborhoods you’re considering and think a quick visit can’t hurt. Think again, warns Lane. Your first step should be talking with a housing counselor, lender, real estate agent, or other trusted adviser to help you understand if you’re ready to buy or if renting could be a better option. According to the Zillow Group Consumer Housing Trends Report, only 46 percent of buyers did not get the first home on which they made an offer, demonstrating that in today’s fast-moving market, “disappointment and competition are now part of the process.” You need an ally who knows the system inside and out. Looking at homes you can’t afford. Audrey Fox, a broker for Howard Hanna Real Estate Services in Elizabeth City, NC, insists that home buyers get pre-approved before she shows them homes. Pre-approval involves completing a loan application and submitting documentation like W-2s, tax returns, and pay stubs. And remember, being approved for a certain amount doesn’t mean you have to spend that much. “You should decide how much you’re comfortable paying for your mortgage each month, considering all of your expenses beyond the mortgage, and focus on homes within your budget,” notes Deggendorf. Not comparing mortgage quotes. Just because you have worked with one lender, or gotten pre-approved by them, doesn’t mean you have to stick with them. In fact, to get the best loan terms, you should shop around and compare quotes from different lenders, advises Deggendorf, who notes that Fannie Mae research has found only two-thirds of shoppers get more than one mortgage quote. “If you don’t look around, you could be leaving money on the table,” he says. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Mortgage Rates Spike to End 2016 By Joe Szabo, Scottsdale Real Estate Team

November 29, 2016 Joe Szabo

Exterior Backyard

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates have spiked 0.5 percent since the U.S. presidential election earlier this month. On a 30-year fixed loan of $300,000, this increases your monthly payment by $85. If you were waiting to refinance, this is a wake up call, and if you plan to buy a home, it’s time to reevaluate your budget — because rates are unlikely to drop. Let’s review what happened, and where we go from here.

Why rates are rising

Rates rose after Donald Trump became president-elect because market participants believe his proposed policies — infrastructure spending, tax cuts, and trade tariffs — will be inflationary if enacted. Rates are tied to bonds, because bonds pay a rate of return to investors each year. If policymaking fuels inflation, a bond investor’s rate of return will be worth less in the future. Investors sell bonds on inflation fears, and rates rise when bond prices drop in a selloff. This is exactly what has happened. Since the election, bond selling has led to the biggest bond losses in 26 years. Thirty-year mortgages have jumped into the low 4-percent range from the mid 3-percent range at record speed. This dramatic rate spike might level off near-term, but don’t count on a reversal back to record lows.

Where we might go from here

Jeffrey Gundlach, one of the world’s most respected bond investors, thinks we’ve seen about 80 percent of a post election rate spike ahead of the Federal Reserve meeting on December 14. This means rates could rise a bit more in the coming weeks, then the next catalyst will be Fed policy. The Fed has two main policy influences on rates. First, they control an overnight bank-to-bank lending rate that serves as a benchmark for overall rate levels in the economy. In December 2015, they hiked this rate 0.25 percent after keeping it near zero since December 2008, when the financial crisis was at its worst. There’s almost 100% probability of a rate hike at the Fed’s December 14 policy meeting. If the Fed does hike, this will reinforce inflationary expectations, driving higher rates. It will also increase rates on home equity line of credit (HELOC) second mortgages. Second, the Fed has helped to keep rates low since January 2009 by buying bonds that directly impact mortgage rates — rates have dropped (or stayed low) on this Fed buying. Rising rates will hurt the Fed’s ability to buy enough bonds to continue holding rates down. All of this means the Fed won’t be as rate-friendly as we’ve become accustomed to since 2008. This is why it’s very unlikely rates will drop from here, and may rise instead. Nobody knows how much more until we get policy clarity from the first 100 days of a Trump administration, and the corresponding Fed reactions February 1, March 15, and May 3.

Implications for home buyers and owners

Below are some things you should be aware of as you evaluate your options in a rising rate environment. These predictions incorporate the latest available economic estimates (from November 16) from the Mortgage Bankers Association.

Last call to refinance. Rates are still low historically, but if you’ve been waiting to refinance — for a lower rate/payment or to take cash out of your home — look at your options immediately, before rates rise further.
HELOC rates will spike next. If you have a HELOC second mortgage, it’s tied to the Prime rate, which will rise in lock step with the Fed rate noted above. The Prime rate is expected to rise .25 percent in December, then rise steadily to be a full 1 percent higher than today by late 2017. Talk to your loan adviser about refinancing your HELOC into a fixed rate second mortgage so your rate can’t rise.
Homeowners, re-calculate your budget. If you’ve been pre-approved to buy a home, that pre-approval was done using a debt-to-income ratio, which will increase with rising rates. Ask your lender to refresh your pre-approval with current rates to see what your budget looks like, and to ensure you still qualify for your target home price.
Home prices shouldn’t spike. Rising rates may help keep home prices from rising too quickly. Median existing home prices are expected to go from $233,300 in 2016 to $244,100 in 2017, and median new home prices are expected to go from $305,900 to $311,500 in the same period.

Healthy home-buying market in 2017. Total home purchase loans made will increase from $990 billion in 2016 to $1.1 trillion in 2017, while refinances will plummet from $901 billion in 2016 to $484 billion in 2017. Existing home sales will increase from 5.4 million in 2016 to 5.7 million in 2017, and new home sales will increase from 575,000 in 2016 to 649,000 in 2017.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Festive Porch Decorations That Go From Fall to Winter By Joe Szabo, Scottsdale Real Estate Team

November 25, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you delight in decorating your home for the season or the holidays, make sure you’re extending that festive feeling to the exterior, too. Specifically, your front porch. It’s the gateway to your home, after all. “[Front porch decor] adds a homey touch,” says Whitney Johnson, the home editor for online retailer jane.com. “It’s really welcoming, and shows people your personal style.” Here are some go-to tricks home decor experts use to jazz up their own porches during the transition from fall to the winter holidays.

Accessorize base pieces

Transitioning into a new season doesn’t mean you have to overhaul your whole porch design. You can make a fall look move seamlessly into winter. One of the best ways to do this is to use staple pieces that you can accessorize. For example, one of Johnson’s favorite tricks is filling oversized iron lanterns with seasonal items like leaves in the fall and switching to colorful ornaments in the winter. You can keep a simple olive branch wreath on the door all year, and dress it up with a seasonally appropriate ribbon. Fill planter boxes with gourds and pumpkins or corn, then replace them with pinecones and evergreen or holly in the winter. If you don’t have a large front porch, that doesn’t mean you can’t still make use of it. Chantal Lamers, the home editor for Sunset Magazine, suggests adding a rustic ladder where you can hang wreaths, garland, seasonal greeting signs, or string lights. Similarly, a vertical wall garden is a trendy way to add greenery without taking up much floor space. Of course, simply using the sides of porch steps as decorative shelving is another option.

Pumpkins, post-Halloween

Pumpkins are a staple of fall decor, but you don’t have to leave them in the dust after Halloween (unless you carved them). Leave out variously shaped and colored gourds and pumpkins through November. Johnson recommends decorating in odd numbers for visual interest and asymmetry.

Another creative way to use a pumpkin is to create a planter out of it by hollowing it out and inserting a flower pot inside (mums are a popular flower for fall). You can also poke round holes all over the pumpkin to create a non-Halloween lantern. But keep in mind that the pumpkin will start to deteriorate once you cut into it. White pumpkins are a natural way to get a winter look. For a more glamorous feel, spray-paint pumpkins and gourds a metallic color.

Fall and winter plants

Design experts agree that adding some greenery to your porch is a must. Container gardens are an easy way to go. “For fall, I like incorporating flowers because it’s the last chance,” says Justin Hancock, plant expert at Costa Farms. A beautiful container garden that’s ready for winter and fits even a small front door area. Image courtesy of Dunn Gardens. Hancock’s go-to frost-tolerant plants include:

Flowering kale. This hardy, showy cabbage can survive even into the 20-degree range. It looks like a flower and comes in a range of colors, including lavender, rose, white, yellow, and green.
Croton. A low-maintenance fall favorite, it has dark green, orange, red, and yellow leaves that are thick and leathery, so they hold up well in drought conditions (read: they’re good for people who forget to water their plants).
Ajuga. An herbaceous plant in the mint family that blooms tiny periwinkle flowers, it’s durable and great for containers.
Pansies and violas. These delicate-looking flowers can survive temps as low as 30 degrees.

If you don’t feel like dealing with live plants, Johnson says fake greenery is just fine. “I love artificial wreaths because I don’t have to buy a new wreath every season, and no one knows the difference.”

Found items

Some of the best design tools for fall and winter are totally free: tree branches and twigs — or “wintry scraps,” as Lamers calls them. In the fall, he adds branches to container gardens to add structure; in the winter, he jazzes up the look by tying on ribbons or spray-painting them, or adding evergreen branches. Red twig dogwood is also a favorite for its purple/red color. “They provide color without having to spray paint, and the color looks really striking in snow,” Hancock says. Pine cones are another versatile found item. Hancock suggests baking them in the oven, which causes natural resins to leak out so they look glazed. Birch logs also add a traditional holiday look. Incorporate evergreen branches, birch logs, and spray-painted twigs into your porch decor. Courtesy of Zillow Digs.

Money-saving hacks

Beyond using branches and other found items, there are plenty of other ways to shave some dollars and cents off your decorating scheme. Choose a decorating theme first, Johnson says, so you’re not buying “random things” you won’t end up using. Check flea markets and Etsy for cheaper versions of items you love in pricier stores, advises Lamers. Put your creativity to work, and you can create charming and festive porch decor to take you all the way through to spring. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Don’t Let Your Feast Go Up in Flames: Preventing Thanksgiving Fires By Joe Szabo, Scottsdale Real Estate Team

November 22, 2016 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The countdown to turkey, stuffing and pumpkin pie has begun. Thanksgiving’s arrival means many of us are scouring the closet for pants with stretchy waistbands so we can prepare to feast. The holiday is all about giving thanks and spending a day with loved ones. But cooking the festive Thanksgiving meal can lead to fires. And fires can lead to injuries, deaths, or property loss, so make sure to follow some safety suggestions for this holiday.

Check the stats

Thanksgiving Day is the pinnacle of home-cooking fires, accounting for about three times as many fires as any other day of the year, according to the National Fire Protection Association (NFPA). Each year between 2011 and 2013, Thanksgiving Day produced an average of 2,100 residential building fires, resulting in $28 million in property damage, 50 injuries, and 10 deaths, according to a report produced by the U.S. Fire Administration. What causes most Thanksgiving fires? More than 71 percent of fires were attributed to cooking, and the highest percentage of fires (24.6 percent) occurred between noon and 3 p.m., the report said.

Eyes on the prize

Er, turkey. Leaving food unattended while it was cooking was the leading cause of Thanksgiving cooking fires, according to the NFPA. You’ll want to visit with your guests during this holiday, but it’s far more important to pay attention to what’s in the oven or on the stovetop so that you don’t become a statistic. Also, assign guests items to bring for the meal. Having a potluck-style Thanksgiving dinner will prevent you from doing all the cooking, so you won’t be trying to cook multiple dishes at once. Giving your undivided attention to one dish at a time will help to keep food from burning and starting fires. And when you want to chat with your guests while you’re cooking, call them into the kitchen with you. Leaving the room while food is in the oven or on the burners is a risky move that makes your home insurance provider sweat.

Don’t wear loose clothing while cooking

Let’s set the scene: You’re wearing a baggy sweater while sauteing vegetables in oil, and you divert your attention to talk to a family member. A fire ignites, and, in a panic, you attempt to move the pan to the sink to run water over it. When you move the pan, your loose sleeve connects with the flames and, in a flash, your entire arm is on fire. There are several things wrong with this scenario. The first is that you should avoid wearing loose-fitting clothes while cooking, as it puts you at an increased risk to catch fire and get injured. Secondly, never move a pot that’s on fire, or try to put out a grease or oil fire with water. It’s best to put a lid on top of the pot to smother the fire, leave the pot where it is, and turn the heat off when the fire has been tamed. And we won’t even mention getting distracted while cooking.

Keep fire hazards away from the stove

Just like ill-fitting clothing is a hazard that can easily ignite, so are things like potholders, wooden utensils, towels, and flowers. Keep these items away from burners and the oven to reduce the chances of having a kitchen fire. It’s also important to keep pets out of the kitchen. Say you just turned off the burner, but Fido comes sniffing around, puts his paws up on the counter, and accidentally slides a towel on top of the still-hot burner without you noticing, causing it to be engulfed in flames. Avoid this type of scenario by keeping the dog in a gated room and by keeping other hazards at bay.

Know the biggest risks

Frying puts you at the greatest risk for home fires. So if you’re deep-frying the turkey this year, take extra precautions.

Keep the fryer away from the house and on even ground. The fryer should be set up more than 10 feet away from the home, and on level ground to keep the oil even.
Completely thaw and dry the turkey first. Only fry a turkey after it has been fully thawed and dried off to reduce the possibility of splattering grease, which can ignite fires.
Keep children and pets away, and have a fire extinguisher nearby. The last thing you want on Thanksgiving Day is for a child or pet to knock over the fryer and get injured.

If you experience a Thanksgiving Day fire

The majority of non-fatal Thanksgiving Day fire injuries occurred when people tried to fight the fires themselves. If your home catches fire when you’re preparing Thanksgiving dinner, and you don’t have a fire extinguisher on hand, just get everyone out of the house. Keep yourself, your family, and your guests safe. You can call 911 when everyone has evacuated. The good news is that property damage and liability coverage for incidents involving fires are typically eligible for coverage under standard home insurance policies. That’s something to be thankful for. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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